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Michael Preysman, chief of the online boutique Everlane, at a plant in Vernon, Calif., where its T-shirts and sweatshirts are made. | Photo Credit: The New York Times

 

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Written By: STEPHANIE CLIFFORD

The revolution that has swept the food industry is expanding to retail: origins matter.

With fair-trade coffee and organic fruit now standard on grocery shelves, consumers concerned with working conditions, environmental issues and outsourcing are increasingly demanding similar accountability for their T-shirts. The issue has been brought to the forefront by the garment factory collapse in Bangladesh, which killed more than 800 people.

And some retailers are doing what was once unthinkable, handing over information about exactly how, and where, their products were made.

Everlane, an online boutique, last week added paragraphs to its Web site describing the factories where its products are made.

Nordstrom says it is considering adding information about clothes produced in humane working conditions.

An online boutique breaks down the number of workers involved in making each item and the cost of every component, while a textiles company intends to trumpet the fair-trade origins of its robes when Bed Bath & Beyond starts selling them this month.

And a group of major retailers and apparel companies, including some — like Nike and Walmart — with a history of controversial manufacturing practices overseas, says it is developing an index that will include labor, social and environmental measures.

New research indicates a growing consumer demand for information about how and where goods are produced. A study last year by professors at the Massachusetts Institute of Technology and Harvard showed that some consumers — even those who were focused on discount prices — were not only willing to pay more, but actually did pay more, for clothes that carried signs about fair-labor practices.

“There’s real demand for sweat-free products,” said Ian Robinson, a lecturer and research scientist at the University of Michigan who studies labor issues. Consumers “don’t have the information they need, and they do care.”

The garment factory collapse that killed more than 800 workers in Bangladesh last month has added urgency to the movement, as retailers have seen queries stream in from worried customers.

“In the clothing industry, everybody wears it every day, but we have no idea where it comes from,” said Michael Preysman, Everlane’s chief executive and founder. “People are starting to slowly clue in to this notion of where products are made.”

Major retailers have long balked at disclosing the full trail, saying that sourcing is inherently complex — a sweater made in Italy may have thread, wool and dye from elsewhere. Another reason: Workplace protections are expensive, and cheap clothes, no matter where or how they are manufactured, still sell, as H&M, Zara and Joe Fresh show through their rapid expansion.

But labor advocates note that consumers’ appetite for more information may put competitive pressure on retailers who are less than forthcoming. In recent weeks, government officials, including Chancellor Angela Merkel of Germany, and labor and consumer advocates have cited the Bangladesh collapse in calling for the adoption of fair-trade standards or labeling. In direct response to what happened in Bangladesh, Everlane added information to its Web site about the factories where its clothing is made. “This factory is located 10 minutes from our L.A. office,” one description for a T-shirt reads . “Mr. Kim, the owner, has been in the L.A. garment business for over 30 years.”

Everlane says it will soon add cost breakdowns for all of its clothing, along with photographs of factories where that clothing is made and information about the production.

Mr. Preysman says Everlane has long received questions from customers “around where the products are sourced from and how we can tell that the labor is good.” It is an inexact science, he said. But he added that he looks for factories certified by independent outside organizations and has executives spend time with a factory’s owner to see if he or she “is a decent human being.”

Honest By, a high-fashion site introduced last year, includes even more specific information about its products. Take a cotton shirt that costs about $320: it took 33 minutes to cut, 145 minutes to assemble and 10 minutes to iron at a Belgian factory, then the trim took an additional 10 minutes at a Slovenian plant. The safety pin cost 4 cents, and transportation about $10.50.

Bruno Pieters, the site’s founder, said by e-mail that “as long as we keep paying companies to be unsustainable and unethical, they will be.” But, he said, that may be changing. He cited a spike in sales that he asserted was in response to issues raised by recent overseas sourcing disasters.

Lush Cosmetics, a company based in Britain, has added video from its factories and photographs from buying trips to places like Kenya and Ghana to its Facebook page. Simon Constantine, head perfumer and ethical buyer, said he would like to add links to the factories Lush buys from, to encourage other cosmetics companies to support them.

Nordstrom said it had provided factory information in response to shoppers’ calls, and was considering going a step further, said Tara Darrow, a spokeswoman. The Nordstrom Web site specifies eco-friendly products, “so how can we do the same with people-friendly?” Ms. Darrow asked. “Hearing from customers and knowing they care definitely compels us to want to do more.”

A variety of groups are working on new apparel industry labor standards.

The Sustainable Apparel Coalition, which includes big names like Nike, Walmart, Gap, J. C. Penney and Target, has been testing an index called the Higg Index. It started last year with environmental goals, but the new version due this fall will include social and labor measurements.

The coalition was formed in 2011 to create one industry standard for sustainability and labor practices, rather than a patchwork approach. Some of the companies supporting this index have had sourcing problems — Walmart subcontractors were using the Tazreen factory, the Bangladesh plant where a fire killed 112 workers last November. Gap, Target and Penney produced clothing at another Bangladesh factory, where a fire killed about 30 workers in 2010. Nike, which faced a global boycott over sweatshop conditions in its overseas factories, was among the first major apparel companies pressured to disclose the factories it uses.

For now, the index is just for companies’ internal use. But Jason Kibbey, executive director of the coalition, said the goal was to give the information to shoppers, too, through a label or via the Web or apps. Labor advocates like Scott Nova, executive director of the Worker Rights Consortium, however, say that self-regulation may be ineffective.

Another certification, Fair Trade USA, began in coffee and only recently moved into apparel. PrAna, a yoga company that is among the first American apparel firms to be fair-trade certified, said the process included tours of its cut-and-sew plant in Liberia and other factories, a review of factory books and systems, and an assessment of workers’ pay relative to local salaries. PrAna sold one fair-trade T-shirt in 2011, and now sells nine such products.

Those products are priced 10 percent more than a comparable item, said its chief executive, Scott Kerslake, and they have been selling well, but PrAna has to be careful not to “completely chase away consumers on it” given the more expensive process. Now, it is trying to do more to alert consumers to the certification: the logo is only on PrAna’s tags, but it plans to put the certification logo on garments.

For some shoppers, the fair-trade pitch goes only so far. Marci Zaroff, founder of Under the Canopy, which is introducing a fair-trade certified bathrobe at Bed Bath & Beyond this month, said it could be hard to convey the message, and “that’s why we sell on style, quality and price.”

Neeru Paharia, an assistant professor at the McDonough School of Business at Georgetown, recently completed a study on consumers’ attitudes toward sweatshop labor. She found that the complex supply chain in retailing made it easier for consumers to justify poor labor practices.

“Most people probably would not hire a child, lock them in their basement, and have them make their clothes,” she said, “but this system is so abstracted.”

She also found that consumers were concerned with labor practices — as long as they were not that interested in buying a product like shoes. But “if the shoes are cute — if they like the shoes — they actually think sweatshop labor is less wrong,” she said.

The collapse in Bangladesh may be changing that. One look at the Facebook site of Joe Fresh, which produced clothing at that factory, suggests that customers are upset, and Joe Fresh’s parent, Loblaw Companies, has vowed to audit factories more aggressively and compensate the victims’ families. Shoppers like Lauri Langton, 62, of Seattle, plan to push retailers for more information. “You should be able to tell, right away, where the product is produced, so that you can walk away from the product and not buy it if you do not believe it was produced in a humane way,” she said. “That’s where we have power as consumers.”


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New building sets offer fans exciting building options.

Hatfield, PA (PRWEB) June 10, 2013

K’NEX Brands, the US construction toy company focused on Building Worlds Kids Love®, is pleased to introduce four new additions to its K’NEX Building Sets line. These K’NEX Building Sets contain 100% made in the USA bricks, rods and connectors that invite children of all ages to imagine, build and play!

K’NEX Building Sets: Intro Assortment
The K’NEX Intro Assortment is the perfect set for first-time builders. Choose from one of three sets: the classically designed plane, helicopter with working propeller, or truck with rotating wheels. Collect and build all three to create a space shuttle with cargo doors that open and close. Each set contains 60+ classic, made in the USA K’NEX rods and connectors and full color instructions and offer great building at a great price. Suggested retail price is $5.99. Ages 5+. Available Now.K’NEX Building Sets: Robo-Creatures Assortment
Collect & build all three motorized robots in this assortment. Choose from Robo-Sting, Robo-Smash, or Robo-Strike. Each set boasts over 150 made in the USA K’NEX bricks, rods & connectors. Each robot features a motor that allows for unique and exciting mechanical movement. Collect & combine all three to create the ultimate robotic creature. Suggested retail price is $15.99. Ages 7+. Available Now.

K’NEX Building Sets: Extreme Sports
Cool extreme sports builds will capture young builders’ imaginations. The Extreme Sports building set features 10 building ideas including a hang glider, jet skier, sky diver, sport bike rider and more. Build your own daring stunt man complete with the included helmet-head and then create an action-packed stunt of your own imagination for him to complete. Set also features full-color instructions and 250+ Classic K’NEX pieces including made in the USA rods & connectors. Suggested retail price is $17.99. Ages 7+. Available Fall 2013.

K’NEX Building Set: Amusement Park Series Assortment-Space
Collect & build 3 space themed rides with the new Amusement Park Series assortment. Choose from the Star Shooter Coaster, Amazin’ 8 Coaster, or the Super Sonic Swirl. All three rides are motorized for exciting realistic performance. Each amusement park ride comes with over 400 parts including made in the USA rods & connectors. Collect & build them all and create your own amusement park—right in your living room. Each sold separately. Suggested retail price is $29.99. Ages 7+. Available Fall 2013.


About K’NEX Brands
Founded in 1992, K’NEX Brands, the world’s most innovative construction toy company, was established to make and sell what has become one of the world’s leading integrated construction systems for children and is America’s STEM building solution. Winner of over 250 international awards and recognitions, K’NEX, America’s building toy company, is focused on Building Worlds Kids Love and encourages youngsters to “imagine, build and play.” From the living room to the classroom, K’NEX has building toys specially designed for every age group and skill level. The K’NEX family of brands includes K’NEX Building Sets, K’NEX Thrill Rides, K’NEX Education, Lincoln Logs®, Tinkertoy®, NASCAR®, Angry Birds™, Mario Kart Wii™, Mario Kart 7™, Super Mario™, PacMan™ and more. Since 1992, The Rodon Group, a subsidiary of K’NEX Brands, L.P., has manufactured over 31 billion parts for the K’NEX building toy system. Join us as we help build the leaders of tomorrow. For more information, please visit http://www.knex.com or http://www.rodongroup.com.
Both The Rodon Group and K’NEX are corporate members of The Made in America Movement. 

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Small American flags are displayed April 11 at the My Made in America Store in Gillette. All of the products sold from the store are 100 percent made in America. The store opened in November 2012 after owners Rod and Susan Mathis had conceptualized it earlier in the year. Rod came up with the idea after visiting a boot shop where he requested a shoe made 100 percent in America and had trouble finding the right kind.

GILLETTE — Selling merchandise that’s made in America involves sending a lot of it back to the manufacturer.

Store owners Rod and Susan Mathis, owners of My Made in America Store in Gillette, ordered American flags from Annin Flagmakers of Roseland, N.J. But Rod had to send back some of the poles because they were outsourced to a foreign country. He now sells poles from EZPole Flagpoles of Eastlake, Ohio.

They ordered cast iron cookware from Lodge Manufacturing Co. of South Pittsburg, Tenn. But Rod had to send some glass lids back because they were made in China. He also cannot sell the company’s cookbook because it’s printed outside the United States.

Rod Mathis has discovered labels can be deceiving. Companies will list products as made in the United States when sometimes nearly half of the product was made elsewhere.

For instance, he planned to sell mugs with logos for each branch of the U.S. military. But he had to give up the idea when he learned that, while the mugs were made in the United States, the logos were going to be made elsewhere.

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Rod Mathis poses April 11 in front of a 100 percent cotton, 100 percent made-in-America flag at the My Made in America Store he co-owns with his wife, Susan, in Gillette. All of the products sold from the store are 100 percent American-made. The store opened in November 2012 after Rod and Susan had conceptualized it earlier in the year. Rod came up with the idea after visiting a boot shop where he requested a shoe made in America and had trouble finding the right kind. PHOTO CREDIT: Leah Mills/Star Tribune

Sometimes, buying American-made can be more expensive. After all, labor costs are higher in the United States than in China. But Rod held up an Annin flag and showed the quality. The materials were heavier. He believes the flag is worth the value.

“It’s hard to find an American-made flag,” he said.

The store is a place where you can find items of all kinds — including patriotic gear such as American flags, prisoner of war “Never Forgotten” wall hangings, fierce-looking eagles stitched on clothing, organic soap and raw honey.

Appealing to the camo-wearing biker daddy with some stuff for the earth goddess and people in between, Rod and Susan Mathis named their store for the obvious demographic: Shoppers who want to buy goods made in the United States.

“People are unemployed,” Mathis said. “Yet we’re buying stuff made in China.”

It’s not easy to find products made in the United States anymore. It’s even harder to stock a 900-square-foot retail space with solely U.S.-made goods, Mathis said.

Shoppers who want to support local businesses will find baskets and silvery jewelry made in Upton, wall art made in Moorcroft and Cheyenne, coffee tables from Hulett, soaps and lip balms from Douglas, tissue-box holders made in Gillette.

Five percent of the store’s profits will go in an account to assist wounded veterans, Rod said.

Military veterans receive a 10 percent discount at the store.

Recently, when the Star-Tribune visited the store, no one stopped by. But business is “good when they can find us,” Rod Mathis said. They’re located in a building at 203 Carey Ave., Suite 3, where Rod, who also owns Gillette-based D&P Electric, did electrical work in exchange for three months of free rent.

“We’re not quite six months into it,” he said. “It’s an experiment still.”


SOURCE: Casper Star-Tribune

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David Rocks and Nick Leiber

When Sonja Zozula and Jerry Anderson founded LightSaver Technologies in 2009, everyone told them they should make their emergency lights for homeowners in China. After two years of outsourcing to factories there, last winter they shifted production to Carlsbad, Calif., about 30 miles from their home in San Clemente. “It’s probably 30 percent cheaper to manufacture in China,” Anderson says. “But factor in shipping and all the other B.S. that you have to endure. It’s a question of, ‘How do I value my time at three in the morning when I have to talk to China?’ ”
As costs in China rise and owners look closely at the hassles of using factories 12,000 miles and 12 time zones away, many small companies have decided manufacturing overseas isn’t worth the trouble. American production is “increasingly competitive,” says Harry Moser, founder of the Reshoring Initiative, a group of companies and trade associations trying to bring factory jobs back to the U.S. “In the last two years there’s been a dramatic increase” in the amount of work returning.
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LightSaver executives no longer spend hours on the phone with China | Photograph by Michael Schmelling for Bloomberg Businessweek

An April poll of 259 U.S. contract manufacturers—which make goods for other companies—showed 40 percent of respondents benefited this year from work previously done abroad. And nearly 80 percent were optimistic about 2012 sales and profits, according to the survey by MFG.com, a website that helps companies find manufacturers. “A decade ago you just went to China. You didn’t even look locally,” says Ted Fogliani, chief executive officer of Outsource Manufacturing, the San Diego company working with LightSaver. “Now people are trying to come back. Everyone knows they’re miserable.”

For LightSaver, the decision was simple. Neither of the founders has ever been to China, which made communicating with manufacturers difficult. Components that were shipped from the U.S. sometimes got stuck in customs for weeks. And Anderson had to spend hours on the phone to explain tweaks in the product. “If we have an issue in manufacturing, in America we can walk down to the plant floor,” Anderson says. “We can’t do that in China.” Anderson says manufacturing in the U.S. is probably 2 percent to 5 percent cheaper once he takes into account the time and trouble of outsourcing production overseas.

Dana Olson makes a living convincing small manufacturers that it pays to produce domestically. About 10 percent of the roughly 60 companies that his Minneapolis firm, Ecodev, has worked with have moved manufacturing to the U.S. or decided not to send it overseas, and another half-dozen are considering similar moves. “There’s a growing sense, with the economy doing what it’s doing, of U.S. companies wanting to produce in the United States,” says Olson. “It’s very important to them to have ‘Made in the U.S.A.’ on their label again.”

Since 2008, Ultra Green Packaging, one of Olson’s clients, has used manufacturers in China to make compostable plates and containers from wheat straw and other organic materials. By yearend, Ultra Green expects to start producing the bulk of its wares at a plant in North Dakota to cut freight costs and protect its intellectual property. “They’re infamous over there for knocking [products] off,” says Phil Levin, chairman of the 10-employee company. “All anybody needs to do is find a different factory and make a mold.”

For Unilife, moving production to the U.S. helped it win regulatory approval for an important product: prefilled syringes with retractable needles that make it almost impossible for medical personnel to accidentally stick themselves. Although the company used Chinese manufacturers for earlier offerings, syringes preloaded with medications are subject to stringent U.S. Food and Drug Administration rules. So in March 2011, Unilife began making its syringes at a $32 million, 165,000-square-foot plant it built in York, Pa. “The very thing in the U.S.A. that oftentimes we complain about—the complexity of the rules and the regulations—works for us,” says CEO Alan Shortall. “FDA compliance is the main reason we’re here.”

Even with strong Mandarin skills, Brian Bethke grew frustrated with manufacturing in China. The co-founder of Pigtronix, which makes pedals that create electric guitar sound effects, discovered that he couldn’t adequately monitor quality at Chinese factories. The original idea for the company was to develop products in the U.S. and make them in China, where Bethke was living. But after several years of finding technical glitches in as many as 30 percent of pedals, the company decided to move production to Port Jefferson, N.Y. At its small factory in a Long Island office park, the company can run multiple tests on its products and even has a guitarist play each of the 500 to 1,000 pedals it sells monthly before they’re packed and shipped.
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U.S. production lets Pigtronix more extensively test its guitar pedals | Photograph by William Mebane for Bloomberg Businessweek

Pigtronix’s move back, completed three years ago, has helped improve cash flow. While manufacturing pedals in the U.S. can cost anywhere from three to six times as much as it does in China, Bethke says Pigtronix benefits from not having capital tied up in products that spend weeks in transit and then pile up in inventory. “In China, you have high minimum quantities you have to order, so you’re building a couple thousand of every guitar pedal,” Bethke says. “Your carrying costs start to get huge.” Today the company only makes those pedals it’s confident it can sell quickly.

While goods for U.S. consumers are less likely to be made in China these days, overseas production may still make sense for companies that plan to target foreign markets. “What we’re seeing is regionalization, buying stuff from manufacturers in the region where you’re going to sell it,” says Michael Degen, CEO of Nortech Systems, a contract manufacturer based in Wayzata, Minn., that has eight factories in the U.S. and one in Mexico. “It’s very noticeable. … We’ve seen movement in terms of manufacturing in country for country.”

The bottom line: Although manufacturing in China can cost a third what it does in American factories, small companies are bringing production back to the U.S.

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ELIZABETH OLSON
December 2012

BRANDS reviving the “Made in the U.S.A.” slogan to attract buyers for American-produced goods are relying less on patriotism and more on data that shows consumers are willing to pay a premium for better quality, quicker availability and product safety.

But many companies are stepping gingerly, avoiding sweeping claims and spelling out what “Made in the U.S.A.” means for their products. Consumers are more shrewd about how few consumer goods actually are made in the United States, leaving companies less wiggle room about the origin of products.

The Whirlpool Corporation, for example, specified in full-page print advertisements this year that 80 percent of its appliances “sold in the U.S. come from our U.S. factories.” Despite its deep American roots, the 101-year-old company — which makes Maytag, Amana, KitchenAid and Jenn-Air products — has, like other corporate giants, moved some manufacturing abroad.

As a result of its centennial celebrations last year, some consumers have urged the company to talk more about its American origins, said William Beck, a senior marketing director at Whirlpool, which spent $57.4 million in 2011 on advertising, according to Kantar Media, a WPP unit.

In recent months, the appliance giant has been underlining its American factories, and noting in its overall brand advertising that it employs about 22,000 workers (15,000 of them at its manufacturing plants), and spends $7.4 billion annually on operating and maintaining its factories in Iowa, Ohio, Oklahoma and Tennessee.

But Whirlpool, whose ad drew a full-page rebuttal from the International Association of Machinists and Aerospace Workers accusing it of shutting factories in the United States, said nostalgia and similar sentiments do not drive its sales. “Whirlpool’s key differentiating points are quality and innovation,” said Mr. Beck, and “the icing is that, hey, we’re made in the United States.”

Whirlpool does not share its market research, but other market studies show that customers increasingly take note of where a product is made. Perception Research Services International, in a September study, found that four out of five shoppers notice a “Made in the U.S.A.” label on packaging, and 76 percent of them said they would be more likely to buy a product because of the label.

While shoppers, especially those over 35, say they want to help the economy by buying United States-made goods, “the motivating factors actually may be quality and safety,” said Jonathan Asher, executive vice president of Perception Research Services. The company, which is based in Teaneck, N.J., surveyed 1,400 consumers last summer. “People are paying attention in categories that are ingested like food, medicine and personal care products, but less so in electronics, office supplies and appliances,” he said.

In a separate study, the Boston Consulting Group found that 80 percent of consumers surveyed said they would be willing to pay more for “Made in the U.S.A.” products than for those carrying a “Made in China” label.

They would pay the biggest differential for items like baby food and wooden toys, and a smaller percentage for electronics, apparel and appliances, said Kate Manfred, director of the group’s Center for Consumer and Customer Insight in the Americas, which released the study in mid-November.

“Safety and quality, and keeping jobs in America, are the important factors,” she said.

Bixbi, a Boulder, Colo., pet treat provider, has relied on safety to increase sales. The company, which started in 2008 amid revelations of tainted dog food ingredients imported from overseas, sells dog treats made from locally raised chickens and other animals.

“Our sales have grown 600 percent each year,” said James Crouch, who founded the small company with his brother, Michael. “Locally sourced is a key advantage.”

But for all the talk about American-made goods, Bixbi is one of the few clients that have adopted “Made in the U.S.A.” marketing, said Dave Schiff, co-founder of Made Movement, a Boulder advertising firm that handles the Bixbi account.

“Some customers think that the American-made label may just be window dressing and companies can be reluctant to use it,” Mr. Schiff said. He and two colleagues started their firm in April to enlist client companies that manufacture in the United States.

Classifying goods as American-made can be dicey, he discovered, because many products have parts that are made outside the United States. To generate interest in such products, as well as a revenue stream, his firm in July started a Made Collection Web site to sell American-made goods.

But finding goods manufactured in the United States for the Web site has been a challenge, Mr. Schiff said. Many items on the Web site are expensive, like a $225 dress shirt from Hamilton, the Houston company that makes Made in America apparel that competes with brands like Levi’s Vintage Clothing and Orvis, which also capitalize on manufacturing in the United States.

Companies are keenly aware that highlighting American-made credentials can backfire after the experience of the apparel maker Ralph Lauren. Renowned for its American nostalgia, Lauren provided uniforms for the 2012 United States Olympic team that were made in China. That resulted in threats of a boycott by some angry consumers.

Some companies like Exxel Outdoors, which makes camping, hunting and fishing equipment, have considered, then rejected, marketing their American-made credentials. Exxel makes two million sleeping bags annually at its Haleyville, Ala., factory.

“We do manufacture in the United States, but there are a lot of variables, like where the components are made. Some of ours come from abroad, so it could be confusing,” Harry Kazazian, the company’s chief executive, explained.

“Simply using the Made in the U.S.A. label is not enough,” said Jaynie L. Smith, chief executive of Smart Advantage, a consulting firm based in Fort Lauderdale, Fla.

“Companies can be foreign owned,” said Ms. Smith, who wrote “Relevant Selling,” a book about corporate sales strategy. “But they need to say that ‘We are still on your soil. We create jobs. We make quality products, and we’re delivering them quickly.’ ”


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by Morris Beschloss

December 25, 2

With the traumatic impact of “outsourcing” jobs and production, especially by America’s manufacturing giants, it may come as a surprise to many that the U.S.A. is still the world’s number one generator of manufactured goods production at $1.8 trillion annually.
The misconception of America rapidly becoming a nation of “hamburger flippers and insurance salesmen,” is a misplaced parody of the U.S. of yesterday’s loss of dominant steel production, textiles, leather, electronics, etc. This has been turned on its head by a comprehensive essay in the Atlantic Monthly tracking the current “insourcing” turnaround to the evolving cost factors of secure product quality, transportation costs, and the accelerating evolution of technology and changing customer demand tastes.

In the wake of the BP drilling rig failure in the Gulf of Mexico almost 18 months ago, costing untold billions of dollars in penalties and losses, this unfortunate incident has added to the importance of “ultimate responsibility” by the “front line” installer and ultimate user.

Added to these changing circumstances are both escalating and time consuming overseas transportation costs, plus the shrinking of direct labor costs that have actually dropped in the U.S., but quintupled in China during the last 10 years. In the case of high technology, the imbalance has even grown tighter as the cost of labor in finished goods have continued to be less important as part of the total price picture.

But what surprised me most in the Atlantic Monthly article is the fact that GE, universally derided as the “champion of outsourcing,” has taken a leadership role in reopening production facilities in the U.S.

Although dismissed by some as a public relations gesture, due to CEO Jeff Immelt’s previous collaboration as the White House chief of non-existing domestic job creation, the GE “insourcing turnaround is primarily due to the rapid need for constant product innovation, and the shift to “just-in-time” inventory control. This is made almost impossible by today’s multi-month delivery time and the volume of purchases necessary from abroad to achieve a satisfactory cost preference. Other major American multi-nationals are indicating a similar predisposition.

When viewing America’s 2013 domestic production expansion through the prism of “insourcing” rapidity, trade deficit shrinkage. and setting new export records, especially in energy, heavy machinery, military equipment, technology and agriculture, guarded optimism has entered the picture. But it still leaves in doubt economic direction, so heavily colored with questionable politico-economic leadership emanating from Washington, D.C.


SOURCE:  MyDesert.com

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Written By: Arianna Russell
Owner/Inventor at Bodacious Cases


A lot of you may already know that I’m very passionate about having my products 100% Made in America. Well, last Friday I received a phone call from the ABC World News producer. After a twenty-minute interview with me talking about The Band-It Case being Made in America the producer and Co-Anchor David Muir booked a flight from New York City to St Louis, Mo. to visit the manufacturing plant and see the production taking place in person. This was the fastest 4 hours with 20 plus conference calls I‘ve ever had.  Yesterday we did our interview and it went WONDERFUL! 
I believe it is really important to keep products Made in America because it helps our economy and I feel we should do this and not send our money to other countries. I also believe if we keep jobs in our country then we won’t have as high of an unemployment rate. Did you know in the 1960’s 9 out of 10 products where Made in America? Today more then half are now currently being made in foreign countries, 2.5 billion was spent on toys last Christmas from China and there is 10 billion or more spent on Christmas gifts.
As I told David Muir in my interview yesterday “I believe that slowly but surely if Americans buy just $64 of American made products vs China made products that we could potentially create 200,000 jobs. By us keeping our products Made in America this keeps my manufacturer in business, me manufacturing American made products and you as a news anchor being able to cover American made stories. If we don’t make our products Made in America then that’ll put my manufacturer out of work.”
This is an amazing opportunity and a dream come true for an entrepreneur like myself to be on a show like ABC World News and especially to be able to talk and get advice like I did from David Muir. I would like to see more stories like mine in the news. 

ABC World News says that if each American spends just $64 on American Made gifts this Holiday and Christmas season that we can create 200,000 jobs!   Lets wrap a new job this holiday season and buy AMERICAN MADE! 
For more information on Bodacious Cases, check out their website at www.bodaciouscases.com
Follow them on social media:

Bodacious Cases is a Proud Corporate Member of The Made in America Movement.
For information on how to become a member, drop us an line! info@themadeinamericamovement.com

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More than three in four Americans consider the U.S. origin of a garment an “extremely” or “somewhat” important factor in their purchase decision, according to a survey conducted by the NPD Group for Women’s Wear Daily. That’s a 29.8 percent increase from responses 10 years ago. Although Marshal Cohen, NPD Group’s chief analyst, wasn’t surprised at how attitudes towards domestic manufacturing have changed, he didn’t anticipate the strength of support in a flaccid economy. Still, he remained cautious. “When you ask people to pinpoint their feelings about something, you have to take the numbers with a grain of salt,” he told the fashion publication. “If 40 percent of the people say they care, maybe just 20 percent would act on that. The jobs market has had a big effect on conscious consumer priorities, but the wallet doesn’t always follow when it comes to purchasing.”
MAKING IT HERE

Not that brands and retailers shouldn’t explore the opportunity to “build and sell more American product,” Cohen continued. “The companies that are building product in the U.S. and those selling those products need to exploit it; and those who aren’t sourcing here or using product sourced here need to explore it. Who can overlook the opportunity to address what might be even a 20 percent level of greater passion about the products they’re offering?”

A growing number of Americans say they’re ready to buy American even if it costs more.

Whether they’ll put their wallets where their mouths are remains to be seen, but Americans say that they’re ready to buy American even if it costs more. More than one in five respondents—21.4 percent—said they’d pick a U.S.-made shirt or blouse over a comparable import as long as the price wasn’t 25 percent higher. Another 17.3 percent said they’d choose the domestic option if the price was no more than 10 percent more expensive than the alternative. Three in 10, or 30.4 percent, would buy American only if the prices were approximately the same, while 21.8 percent would buy American “under any conditions.”

“Consumers are telling us that they’re willing to pay at least a bit more, and occasionally quite a bit more,” Cohen said. “The tolerance [for higher prices on American products] is there and the consciousness is there, but so far there hasn’t been a move in that direction.”

“Made in America” is a more attractive sell because of intangibles such as social responsibility and national pride, Barbara Kahn, director of the Jay H. Baker Retailing Center at the Wharton School of the University of Pennsylvania, told WWD. “People are more likely to pay for ‘Made in America’ if there was a value proposition tied to it,” she said. “The Italians have done that, and in that kind of a trade-up, people are willing to pay extra money for something. You can market to the economic recovery, the need for more American jobs and social responsibility, but it takes on greater meaning if it’s coupled with emphasis on quality, as some of the premium denim brands have seen.”

Americans may disagree about the premium they’re willing to pay for U.S.-made clothing, but if money were no object, nearly three-quarters—74.2 percent—approve of incentives to rebuild garment and textile production in the United States. Support for new trade barriers to discourage imports was less certain, with 55.7 percent of respondents in favor, 14 percent opposed, and 30.3 percent undecided.


SOURCE: ecouterre

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Firefighters hose down a blaze at a 10-story clothing factory on Nov. 26 in the Dhaka suburb of Uttara, Bangladesh. The fire broke out as people mourned more than 110 factory workers killed in a fire two days earlier at the Tazreen Fashion plant. | Photo Credit: AFP/Getty Images

DHAKA, Bangladesh (AP) — Amid the ash, broken glass and melted sewing machines at what is left of the Tazreen Fashions Ltd. factory, there are piles of blue, red and off-white children’s shorts bearing Wal-Mart’s Faded Glory brand. Shorts from hip-hop star Sean Combs’ ENYCE label lay on the floor and are stacked in cartons.

An Associated Press reporter searching the factory Wednesday found these and other clothes, including sweaters from the French company Teddy Smith, among the equipment charred in the fire that killed 112 workers Saturday. He also found entries in account books indicating that the factory took orders to produce clothes for Disney, Sears , nd other Western brands.

Garments and documents left behind in the factory show it was used by a host of major American and European retailers, though at least one of them — Wal-Mart — had been aware of safety problems. Wal-Mart blames a supplier for using Tazreen Fashions without its knowledge.

The fire has elevated awareness of something labor groups, retailers and governments have known for years: Bangladesh’s fast-growing garment industry — second only to China’s in exports — is rife with dangerous workplaces. More than 300 workers there have died in fires since 2006.

Police on Wednesday arrested three factory officials suspected of locking in the workers who died in Saturday’s fire, the deadliest in the South Asian country’s less than 35-year history of exporting clothing.

Local police chief Habibur Rahman said the three will be questioned amid reports that many workers trying to escape the blaze had been locked inside. He said the owner of the factory was not among those arrested.

The three officials were arrested Wednesday at their homes in Savar, the Dhaka suburb where the factory is also located. Rahman did not identify the officials or give their job status.

Workers who survived the fire say exit doors were locked, and a fire official has said that far fewer people would have died if there had been just one emergency exit. Of the dead, 53 bodies were burned so badly they could not be identified; they were buried anonymously.

The fire started on the ground floor, where a factory worker named Nasima said stacks of yarn and clothes blocked part of the stairway.

Nasima, who uses only one name, said that when workers tried to flee, managers told them to go back to their work stations, but they were ignored.

Dense smoke filled the stairway, making it hard to see, and when the lights went out the workers were left in total darkness. Another surviving worker, Mohammad Rajiv, said some people used their cellphones to light their way.

“Everyone was screaming for help,” Nasima said. “Total chaos, panic and screaming. Everyone was trying to escape and come out. I was pulling the shirt of a man. I fainted and when I woke up I found myself lying on the road outside the factory.

“I don’t know how I survived.”

Rajiv said the factory conducted a fire drill just three days before the fire broke out, but no one used the fire extinguishers. “Only a selected group of workers are trained to use the extinguishers. Others have no idea how to use them,” he said.

Now windows at the eight-story factory are broken, sewing machines melted or burned to ash. Much of the clothing on the lower floors was incinerated. Nightgowns, children’s shorts, pants, jackets and sweat shirts were strewn about, piled up in some places, boxed in others.

Prime Minister Sheikh Hasina and Interior Minister Muhiuddin Khan Alamgir have said arson is suspected. Police say they have not ruled out sabotage.

Wal-Mart had received an audit deeming the factory “high risk” last year, said it had decided to stop doing business with Tazreen, but that a supplier subcontracted work to the factory anyway. Wal-Mart said it stopped working with that supplier on Monday.

Calls made to The Walt Disney Company and to Sears Holdings were not immediately returned.

Local TV reports said about 3,000 garment workers held protests over the fire Wednesday, blocking roads and throwing stones at some factories and vehicles. It was the third straight day of demonstrations, and as they did previously, factories in the area closed to avoid violence.

Police used batons to disperse the protesters, but no injuries were immediately reported.

According to local television, most factories in the area closed after opening briefly because of the protests — a common tactic to avoid violence.
—–
Associated Press writer Farid Hossain in Dhaka, Bangladesh, contributed to this report.


SOURCE: USA Today

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Richard Lord
October 4, 2012


Today is the first national Manufacturing Day, reminding us that the United States still leads the world in production of manufactured goods, and that the manufacturing sector is at the core of our economy.
Manufacturing activity is coming back from the recession, and may also be coming back from overseas. The 2012 U.S. Re-shoring Survey by the MIT Forum for Supply Chain Innovation finds that manufacturers are reconsidering their supply chain strategies due to higher labor costs in developing countries, energy costs and political stability issues, as well as time-to-market concerns. Re-shoring — bringing manufacturing back to the U.S. — is under consideration by a significant number of firms, and some, including auto parts and electrical equipment manufacturers, have moved operations back. The survey finds that federal and state policies, including corporate tax rates, have a major impact on decisions to move or stay.

Here in Massachusetts, “manufacturing is alive and well, and has a healthy future,” according to a recent report, “Staying Power II: A Report Card on Manufacturing in Massachusetts,” by professor Barry Bluestone and his team at Northeastern University.

Some of its key findings about Massachusetts manufacturing today:

Manufacturing employment has stabilized after a sharp decline in the recession

Manufacturing is the state’s six-largest employment sector — and the second-largest (after health care) in terms of payroll

Manufacturing’s share of gross state product has risen for the past two years, to 12.2 percent

The number of manufacturing firms actually increased in 2011, for the first time in decades

Manufacturing is more technologically intense than ever; in 1970 employment in low-tech sectors was twice that in high-tech, in 2006 they were equal, and by 2010 high-tech was 27 percent larger

Most Massachusetts manufacturing companies are small, and most are family-owned

The manufacturing workforce is more diverse than the overall state workforce

Although most jobs in manufacturing are now “white collar,” only about one position in five requires a college degree

While cost issues and global competition are challenges, the study finds, the skills and work ethic of the state’s workforce are powerful reasons to stay in Massachusetts. But employers are already experiencing difficulty in hiring skilled workers, and an upcoming wave of retirements will create up to 100,000 job vacancies over the next 10 years. The 70 percent of manufacturing firms foreseeing expansion of employment in the state over the next five years must face up to this “recruitment challenge” by focusing on workforce development and promoting manufacturing careers.

In this election year, candidates across the country, from President Obama and Governor Romney on down, have jumped onto the manufacturing bandwagon. Beacon Hill has cut the corporate excise tax, passed bills to control medical and energy costs, strengthened the Workforce Training Fund Program and the community colleges, and created the industry-led Massachusetts Advanced Manufacturing Collaborative. Nationally, however, the reality has been not bipartisan consensus but partisan deadlock.

If Congress really cares about manufacturing, there are issues that demand immediate action. Most urgent is heading off about $500 billion in tax increases that will hit the U.S. economy on January 1, along with huge automatic spending cuts. The top tax rate on dividends will almost triple, the top tax rate on capital gains will increase by more than half, and many small and mid-size manufacturers will see their top marginal tax rate rise, because nearly 70 percent of manufacturers file taxes at individual rates. The Research and Development tax credit expired for the 15th time at the end of 2011. And the U.S. corporate tax rate is the highest in the developed world. Action in other areas is equally vital, if less pressing; for example, the future of workforce development programs, largely shaped by federal policy, remains up in the air.

America’s manufacturing sector, historically the backbone of our economy and of upward mobility in our society, is entering a period of renewed opportunity. We need congressional action, now, to ensure that future expansion takes place here rather that abroad.

Richard Lord is president and CEO of Associated Industries of Massachusetts headquartered in Boston.


SOURCE:  The Salem News

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By ABC News | ABC News Blogs
ABC News’ Sharyn Alfonsi reports: 

They are the pride of America – Team U.S.A. – and for the opening ceremonies of the Summer Olympics in London, they’ll be proudly wearing red, white and blue, from beret to blazer.

The classic American style – shown in an image above – was crafted by designer Ralph Lauren. But just how American is it?

When ABC News looked at the labels, it found “made in China.”

Every item in the uniforms that the U.S. athletes will be wearing at the opening ceremony in London will carry an overseas label.

Nanette Lepore, one of the top U.S. fashion designers, said she was shocked that none of the uniforms had been made in the states. Further, Lepore said that it was “absolutely” possible that the athletes could have been outfitted in U.S.-made clothing. She said U.S. manufactures could have easily made the uniforms – and for less.

Here’s how much the uniforms cost:

Men: 
Beret – $55 
Tie – $125 
Belt – $85 
Shirt – $425 
Blazer – $795 
Trousers – $295 
Shoes – $165

Women: 
Beret – $55 
Scarf – $58 
Belt – $85 
Shirt – $179 
Skirt – $498 
Blazer – $598

“Why shouldn’t we have pride not only in the American athletes, but in the American manufacturers and laborers who are the backbone of our country?” Lepore said to ABC News. “Why? What’s wrong? Why was that not a consideration?”

ABC News reached out to Lauren and the U.S. Olympic Committee and asked why American-made clothing had not been selected for the athletes.

The committee said: “The U.S. Olympic team is privately funded and we’re grateful for the support of our sponsors. We’re proud of our partnership with Ralph Lauren, an iconic American company.”

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Jobs that largely left for Asia still find a niche, above, in North Carolina

ROBBINSVILLE, N.C.–Stanley Furniture Co. – is betting baby cribs are among the few things Americans will pay a hefty premium for just because they carry a “Made in the U.S.A.” label.

The 88-year-old company recently shifted its crib manufacturing back to the U.S. from China to a sprawling factory here that was earmarked for closure with Stanley’s other two domestic plants not long ago. Today, the Robbinsville factory is an oddity in an industry that has been abandoning the U.S. because of costs: It is growing and investing over $8 million in new machinery.

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